The Motley Fool·2025-11-06 08:02Core Insights - Netflix executed a 10-for-1 stock split, its first in nearly a decade, driven by a significant increase in stock price, which reached $1,100, and impressive operating results [2][3] - ServiceNow announced a 5-for-1 stock split, pending shareholder approval, coinciding with its third-quarter results [4][5] Company Performance - Netflix's revenue increased by 538% over the past decade, with net income rising by 5,800%, leading to a stock price surge of 922% [3] - ServiceNow reported a 22% year-over-year revenue growth to $3.4 billion, with subscription revenue also climbing 22% to $3.3 billion, resulting in adjusted EPS of $4.86, a 29% increase [7] - ServiceNow's remaining performance obligation (RPO) grew 24% year-over-year to $24.3 billion, indicating strong future demand [8] Market Position and Analyst Sentiment - ServiceNow's customer cohort growth shows existing customers have increased their total contract value by 288% since 2010, reflecting ongoing success [9] - Analysts are overwhelmingly bullish on ServiceNow, with 89% rating the stock a buy or strong buy, and an average price target of approximately $1,155, suggesting a potential upside of 26% [11] - Morgan Stanley analysts have a higher price target of $1,315, indicating potential gains of 44%, citing robust execution and effective AI strategy [12] Valuation Considerations - ServiceNow's current valuation stands at 107 times earnings and 44 times next year's expected earnings, reflecting a premium valuation typical for high-growth stocks [13] - The stock has gained 3,530% since its 2012 IPO, significantly outperforming the S&P 500's 399% gains [13][14]